Terumo Corporation · TSE:4543
Terumo — FY2008 Earnings Presentation
33 slides from Terumo's earnings presentation, Apr 30, 2008
Slide 1: Financial Results for FYE/Mar.2008
TERUMO CORPORATION Financial Results for FYE/Mar.2008 April 30th, 2008 1
Slide 2: I. Financial Results for FYE/Mar.2008 II. Review of STeP UP (FY05-07)
I. Financial Results for FYE/Mar.2008 II. Review of STeP UP (FY05-07) III. New mid-term business plan (FY08-10) 2
Slide 3: Financial Results for FYE/Mar.2008
Financial Results for FYE/Mar.2008 3
Slide 4: Sales and profits enjoyed double-digit growth
Sales and profits enjoyed double-digit growth (Unit: billion yen) Rate of change FYE/Mar.2007 FYE/Mar.2008 Net Sales ２７６.４ ３０６.４ 11% Gross Profit (%) １５３.３（55.5%） １６８.２（54.9%） 10% S.G.A Expenses (%) ９４.９（34.3%） １０１.３（33.1%） 7% Operating Income (%) ５８.５（21.2%） ６６.９（21.8%） 15% Ordinary Income (%) ５８.０
Slide 5: FYE/Mar.2008 Financial situation
FYE/Mar.2008 Financial situation (Unit: billion yen) Operating Income Net Sales Operating Income Rate Net Income ＋１０.８％ +29.9 ＋１４.５％ ＋１６.５％ 306.4 +8.5 276.4 +6.1 21.8％ 21.2％ 58.5 66.9 43.4 37.2 FYE/Mar FYE/Mar FYE/Mar FYE/Mar FYE/Mar FYE/Mar 2007 2008 2007 2008 2007 2008 5
Slide 6: Net Sales (by Region)
Net Sales (by Region) (Unit: billion yen) ＋６．５％ Outside Japan total +10.0 ＋１６．１％ FYE/Mar. FYE/Mar. 2007 2008 （＋１３．２％ excluding impact of foreign exchange） Outside Japan rate ４５％→４７％ 162.5 152.5 ＋１７．４％ ＋１１．５％ ＋２４．０％ （＋１０．１％） （＋１３.７％） （＋１８.８％） +8.4 +6.1 56.8 52.7 58.8 +5.5 48.4 28.4 22.9 Japan Europe
Slide 7: Net Sales (by Product group)
Net Sales (by Product group) (Unit: billion yen) ＋９.２％ FYE/Mar FYE/Mar. +12.7 2007 2008 151.0 ＋２０.５％ ＋４.９％ ＋６.６％ 138.2 +13.1 +2.2 77.1 +1.9 64.0 47.7 45.5 30.7 28.8 General CV and Home health Interventional hospital vascular care products products products grafts 7
Slide 8: II. Review of STeP UP (FY05-07)
Ⅱ. Review of STeP UP (FY05-07) 8
Slide 9: Achieved double-digit sales growth
Achieved double-digit sales growth (Unit: billion yen) 400 CAGR 10% per annum Consolidated 10% 306.4 Japan 4% Outside Japan 18% 300 200 100 0 Mar.2005 Mar.2006 Mar.2007 Mar.2008 9
Slide 10: Operating Income also achieved double-digit growth
Operating Income also achieved double-digit growth (Unit: billion yen) 75 12% per annum 66.9 50 25 0 Mar.2005 Mar.2006 Mar.2007 Mar.2008 10
Slide 11: Challenge for Dramatic Leap
11 "Challenge for Dramatic Leap’ Forget the past, create the new Terumo era. Global-Innovation-Speed
Slide 12: Achieved all-time sales growth speed
Achieved all-time sales growth speed 500 billion 2 years 400 billion 3 years 5 years 306.4 billion Mid-term target 100 billion yen growth in 12 years 200 billion Mar Mar Mar 2008 2011 2013 12
Slide 13: Sales to reach 400 billion yen in FYE/Mar.2011
Sales to reach 400 billion yen in FYE/Mar.2011 12% per annum 400 billion yen 400 4% 306.4 318.0 300 200 Negative impact ・Foreign exchange 100 ・NHI price revisions 0 Mar.2008 Mar.2009 Mar.2010 Mar.2011 1$ = 114 100 100 100 1euro = 162 155 155 155 13
Slide 14: Operating income to reach 85 billion yen in FYE/Mar.2011
Operating income to reach 85 billion yen in FYE/Mar.2011 100 85 billion yen 12% per annum 75 2% 66.9 68.0 50 Negative impact 25 ・Foreign exchange ・NHI price revisions 0 Mar.2008 Mar.2009 Mar.2010 Mar.2011 1$ = 114 100 100 100 1euro = 162 155 155 155 14
Slide 15: To become Terumo with a sense of presence in the world
To become Terumo with a sense of presence in the world. 3 strategies ・Reorganization of internal companies ・Challenge toward innovation ・Promote globalization 15
Slide 16: Reorganization of internal companies
Reorganization of internal companies Cardiac & Vascular Cardiac & Vascular General Hospital General Hospital Blood Transfusion Home Health Care Consumer Health Care 16
Slide 17: Toward sales outside Japan exceeding 50% of total sales
Toward sales outside Japan exceeding 50% of total sales Outside Japan rate ５1％ (Unit: billion yen) 400 CAGR ■Asia 11% 300 ■Americas 9% 200 ■Europe 16% 100 ■Japan 6% 0 Mar.2007 Mar.2008 Mar.2009 Mar.2010 Mar.2011 FY07 FY08 FY09 FY10 17
Slide 18: Strategies of Cardiac & Vascular company
Strategies of Cardiac & Vascular company • Apply existing core technologies to new domains • Continuous introduction of new products • Increase production capacity for growth • Aggressive expansion of business in emerging countries Aiming to be No.3 in the global market 18
Slide 19: Applying core technologies to new domains
Applying core technologies to new domains Micro- Guidewire Micro-Catheter Brain Guiding-Cathter Peripheral Existing core technologies Heart coil Access devices Stent ‘’AZUR’’ Devices for diagnosis ‘’Misago’’ Devices for treatment Peripheral Liver Kidney Lower extremities Micro-Wire 19
Slide 20: Target share: Double-digit in PCI market
Target share : Double-digit in PCI market Guiding Catheter PTCA Balloon Market : ２５ billion ８４ billion yen FYE/Mar,08 FYE/Mar,11 FYE/Mar,08 FYE/Mar,11 7% 10% 7% 11% PTCA-GuideWire IVUS ３４ billion yen ２５ billion yen FYE/Mar,08 FYE/Mar,11 FYE/Mar,08 FYE/Mar,11 9% 20% 6% 12% 20 ※Market size in Mar, 08
Slide 21: General Hospital company strategies
General Hospital company strategies • Integration of Drugs and Devices • Expansion of B2B business on a global level • Enhancement and improvement of existing products for better safety Aiming to be No.3 in the global market 21
Slide 22: Blood Transfusion company strategies
Blood Transfusion company strategies • Business expansion in the two segments. FY07 FY12 Whole blood Market size 100 billion yen 130 collection Terumo share 16% 27 Aphaeresis Market size 90 billion yen 110 collection Terumo share 3% 10 (TACSI) (TACURA) Automatic centrifugal New aphaeresis separation
Slide 23: Blood Transfusion company strategies
Blood Transfusion company strategies • Opportunities for further growth - Cell therapy and NRC (Neo Red Cell) Aiming to be No.1 in the global market in the long-term 23
Slide 24: Consumer Healthcare company strategies
Consumer Healthcare company strategies • Business with general consumers • Brand image • Preventive medical-care • Marketing outside Japan 24
Slide 25: Capital investment of 70 billion yen (FY08-10)
Capital investment of 70 billion yen (FY08-10) Expansion of production capacity centering on interventional products Plants in Europe and America Increasing local production of catheters New Ashitaka factory Vietnam Plant Responding to increasing demand for Responding to increasing demand interventi
Slide 26: R&D 57 billion yen (FY08-10)
R&D 57 billion yen (FY08-10) Clinical trials of new products ・Nobori in Japan ・DuraHeart in Japan and the U.S. ・Anaconda in the U.S. Products under development ・NRC, Nanocapsules ・Next-generation DES 26
Slide 27: FY08 plan: increasing sales and profits
FY08: Increasing sales and profits by reducing such negative impact of foreign exchange and NHI price revisions (Unit: billion yen) FYE/Mar.08 FYE/Mar.09 Growth Sales ３０６.４ ３１８.０ ４％ Operating ６６.９ ６８.０ ２％ Profit R&D １５.８ １８.０ １４％ expenses Capital １５.７ ２４.０ ５３％ Investment 27
Slide 28: Reference
Reference 28
Slide 29: PTCA Balloon Hiryu is No.1 Share in Japan
Interventional products PTCA Balloon ‘’Hiryu’’ is No.1 Share in Japan ◆Contributing to medical economic improvement ‐Supports a variety of needs with a single unit, completing treatment with a small number of catheters Jun, 07 Mar,08 Terumo Terumo １９％ ２６％ Others Others Target in Mar, 11 Share 35% in
Slide 30: Ultrasound diagnostic system in Japan
Interventional products Ultrasound diagnostic system in Japan ・High-resolution ultrasound diagnostic system with superior trackability toward the target lesion. ・Expanding market due to DES problem. FYE/Mar. 11 Global 40 billion yen ・Sales target FYE/Mar.09 : 3 billion yen ⇒ FYE/Mar.11 : 5 ・Developi
Slide 31: Growing Market: 300 billion
Blood Transfusion products Growing Market : 300 billion Billion yen 成分採血 Aphaeresi 3,500 Aphaeresis 350 ME ME 300 3,000 億円 collection フィルター商品 Filter 3,000 300 フィルター付き Bag with filter 230 2,450億円 2,500 血液バッグ Bag w/o filter CAGR：5％ 250 180 1,900億円 1,500億円 2,000 200 1,400億円 140 150 1,500 150 Whole bloo
Slide 32: TACSI
Blood Transfusion products TACSI :Terumo Automated Centrifuge & Separator Integration TACSI Current procedures New Centrifuge ＋ Separation TACSI Collaboration with Andreas Hettich. The automation of the blood component production eliminates the most sensitive manual steps in the blood Machine compon
Slide 33: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: CCD@terumo.co.jp This document contains forward-looking statements that reflect management’s current views with respect to certain future events and financial performance. Actual results may differ materially from those project